Certified Treasury Professional Practice Exam

The Governmental Accounting Standards Board (GASB) is the primary organization that influences accounting standards for public-sector entities. GASB specifically focuses on improving the consistency, transparency, and accountability of financial reporting for state and local governmental entities. This includes setting the standards for how these organizations prepare their financial statements and present their fiscal activities to the public, ensuring that the reporting meets the needs of various stakeholders, including taxpayers, oversight agencies, and bondholders. GASB works to enhance the quality of the financial reporting process, which is crucial for public-sector entities that operate under strict regulations and have a responsibility to be accountable to the public. The principles established by GASB guide these entities in properly classifying, measuring, and reporting their financial activities, which is fundamental for effective governance and financial management in the public sector. In contrast, the other organizations, such as FASB and IASB, focus primarily on private-sector accounting standards and international financial reporting, while the AICPA provides support and resources to accounting professionals but does not set accounting standards specifically for public-sector entities.